Cryptocurrency exchange Coinbase launched its second-quarter incomes Tuesday and released its letter to investors.
In its quarterly type 10-Q filing, US-based Coinbase revealed that it is under the U.S. Securities and Exchange Commission’s (SEC) scrutiny over its staking programs that enable consumers to make benefits for holding cryptocurrencies.
According to the filing, Coinbase “has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations and existing and intended future products.”
The demands belong to Coinbase staking programs, asset-listing procedure, category of possessions, and stablecoin items, the company elaborated.
At Coinbase, blockchain-rewards earnings, majorly from staking, accounted for 8.5% of web earnings in the 2nd quarter. It stopped by 16% to $68.4 million in the course of the quarter, compared to the very first quarter.
In the letter to the investors, Coinbase mentioned the SEC may dispatch a voluntary demand for its token listings and noting procedure. But the exchange stated it does not understand whether the very same will become an official examination.
Coinbase even more discussed within the letter: “As with all regulators around the world, we are committed to a productive discussion with the SEC about crypto assets and securities regulation, and to working alongside all policymakers to build a workable regulatory framework for the crypto economy that addresses any areas of risk, while enabling the development and adoption of digital innovation for the benefit of the broader society.”
Late last month, Coinbase was supposedly dealing with a probe from the SEC over whether it permitted users to trade unregistered securities. Bloomberg media initially reported the matter. However, the SEC has actually not made the examination public.
This examination was different from the SEC’s case versus previous Coinbase item supervisor Ishan Wahi, his sibling, Nikhil Wahi, and his good friend, Sameer Ramani.
Earlier last month, the guard dog charged the 3 with expert trading, declaring Ishan consistently tipped the timing and info about upcoming listings to his sibling and good friend, who, as an outcome, made revenues worth over $1.1 million out of trading.
The examination including the staking programs may go the very same method the SEC handled Coinbase in 2015.
In September in 2015, the SEC threatened to take legal action against Coinbase if the exchange went on with releasing its organized financing program. Users were primed to make interest through the program by providing their tokens, however Coinbase later on cancelled the job.
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